The Renault Group’s operating income stood at €1,521 million compared with €1,734 million

Resistance of the Group’s operating margin at 5.9%

  • The Group confirms its full year objectives of a Group operating margin at around 6% and a positive Automotive operational free cash flow.

  • Given the degradation in demand, the Group now expects 2019 revenues to be close to last year’s (at constant exchange rates and perimeter).

  • Groupe Renault contained its first half sales decrease at -6.7% in the first half 2019 (1.94 million units sold) in a global market down -7.1%.

  • The Group’s revenues reached €28,050 million (-6.4%) in the semester. At constant exchange rates and perimeter1, the decrease would have been -5.0%.

  • The Group’s operating margin stood at 5.9% and reached €1,654 million compared with €1,914 million in the first half 2018.

  • The Group’s operating income stood at €1,521 million compared with €1,734 million.

  • The net income amounting to €1,048 million (versus €2,040 million), was heavily penalized by the decline of Nissan’s contribution, down -€826 million.

  • The Automotive operational free cash flow at June 30, 2019 was negative by -€716 million, primarily because of the investment increase.

Thierry Bolloré, CEO of Renault, declared: In a tougher than expected environment, the Group stayed its course and achieved a level of performance in line with its expectations for the first part of the year. The launches of many new models, enhanced competitiveness and the teams’ fighting spirit allow the Group to confirm its profitability objectives for the full year.  

Boulogne-Billancourt, 7/26/2019 – Group revenues reached €28,050 million (-6.4% compared to last year). At constant exchange rates and perimeter, Group revenues would have decreased by -5.0%.

Automotive excluding AVTOVAZ revenues amounted to €24,791 million, down -7.7% compared to the first-half of 2018. This decrease was mainly explained by a negative volume effect of -4.6 points, due to the sales decline in Turkey, France and Argentina and to destocking in the dealer network. Sales to partners dropped by -3.1 points due to lower Nissan Rogue production, the closure of the Iranian market since August 2018 and the decline in demand for diesel engines in Europe. The currency effect was negative -1.2 points mainly linked to the devaluation of the Argentinian peso and the Turkish lira. The price effect, positive by +1.0 point, came from the offsetting of these two currencies and price increases in Europe.

The Group’s operating margin amounted to €1,654 million and represents 5.9% of revenues.

The Automotive excluding AVTOVAZ operating margin was down €234 million to €981 million, representing 4.0% of revenues compared to 4.5% in the first half of 2018. Volume effect had a negative impact of -€471 million. Raw materials weighted for -€213 million. The Monozukuri effect was positive by +€385 million: the result of purchasing performance, the increase in the capitalization rate of R&D and an increase in depreciation expenses. Currencies impacted by +€92 million due to the positive effect of the depreciation of the Turkish lira on the production costs. Mix/price/enrichment effect was negative -€95 million because of Clio IV end of life, regulatory enrichment and the decrease in the diesel sales in Europe.

The operating margin of AVTOVAZ amounted to €82 million, to be compared with €105 million in the first half of 2018. Despite a declining market, AVTOVAZ still benefits from the success of its models launched in 2018, but no longer from positive non-recurring effects booked in 2018.

Sales Financing contributed €591 million to the Group operating margin, compared with €594 million in the first half of 2018. This -0.6% decrease includes a negative currency effect for -€14 million and impairments related to mobility services activity for -€21 million. It should also be noted the growing contribution of the margin on services which now stands at €319 million and represents one third of the Net Banking income.

The total cost of risk reached 0.40% of average performing assets compared to 0.37% in the first half of 2018, confirming a robust underwriting and collection policy.

Other operating income and expenses had a negative impact of -€133 million (compared with -€180 million in the first half of 2018), due to provisions notably related to the early retirement program in France of nearly €80 million.

The Group’s operating income came to €1,521 million compared with €1,734 million in the first half of 2018 (-12.3%).

Net financial income and expenses amounted to -€184 million, compared with -€121 million in the first half of 2018. This deterioration is primarily explained by the increase of interest rates in Argentina.

The contribution of associated companies came to -€35 million, compared with +€814 million in the first half of 2018. This decline came mostly from Nissan’s contribution, down -€826 million.

Current and deferred taxes represent an expense of -€254 million compared with -€387 million in the first half of 2018.

Net income reached €1,048 million and net income, Group share totaled €970 million (€3.57 per share compared with €7.24 per share in the first half of 2018).

Automotive operational free cash flow was negative at -€716 million. This results from investments amounting to €2,910 million (up +€742 million) and the negative impact of the change in working capital requirement for -€131 million.

At June 30, 2019, total inventories (including independent dealers) have been reduced by -4.5% and represented 65 days of sales, compared with 61 days at the end of June 2018.


In 2019, the Global Automotive market is expected to decline by around -3% compared to 2018 (-1.6% previously anticipated).

The European market is expected to be stable (excluding “hard Brexit”), the Russian market to be down by -2% to -3% (versus around +3% previously) and the Brazilian market to grow around +8% (versus +10% previously).

Within this context, Groupe Renault changes its revenues guidance: revenues should be close to last year’s (at constant exchange rates and perimeter) compared to an increase initially expected.

The Group confirms its guidance for the other financial full-year 2019 objectives:

– Achieving Group operating margin around 6%,

– Generate a positive Automotive operational free cash flow.


€ million

 H1 2018

H1 2019



Group revenues




Operating profit

% of revenues






-0.5 points

Other operating income and expenses items




Operating income




Net financial income and expenses








Contribution from associated companies




o/w : NISSAN








Current and deferred taxes




Net income




Net income, Group share




Automotive operational free cash flow




  Additional information

The condensed half-year consolidated financial statements of Groupe Renault at June 30, 2019 were approved by the Board of Directors on July 25, 2019.

The Group’s statutory auditors have conducted a limited review of these financial statements and their half-year report will be issued shortly.

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